BEIJING: China increased its coal imports from Indonesia, Mongolia and Australia, customs data showed on Tuesday, as shipments surged in July on hotter weather, but Russian exporters were held back by sanctions and logistical issues.
Indonesia – the largest coal exporter to China and the world – increased its coal volumes 22% on the year to 19.24 million metric tons last month, according to the General Administration of Customs, as importers turned to the low-cost supplier to stock up for the peak summer season.
China’s coal imports from all sources rose to a seven-month high of 46.21 million tons in July, up 18% on the year, customs data published on Aug. 7 showed.
Russian coal imports however fell 3% in July to 8.76 million tons, weighed down by payment difficulties and logistical issues despite Russia’s decision to suspend coal export duties during May-August.
Sanctions on some of Russia’s top coal exporters have made it more difficult for Chinese buyers to settle transactions while transport capacity limits have reduced Russia’s coal exports.
China has been the biggest buyer of Russian coal, taking 45% of the country’s shipments from December 2022 to July 2024, Centre for Research on Energy and Clean Air analysis showed.
Mongolian coal exports to China, mostly of coking coal, also rose, gaining by 23% to 7.31 million tons, in a government-driven push to improve cross-border rail connections.
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Australian coal exports to China increased 14% to 7.17 million tons.
Australian shipments have been recovering since February 2023, when China ended an informal ban in place since 2020, amid warming trade relations between the two countries.
Much of the increase in overall coal imports was driven by long-term contracts signed by traders ahead of the summer season, when air conditioners drive up electricity demand.
But demand failed to meet expectations because of soaring renewable power installations and thermal power generation dropped year-on-year for a third straight month in July, according to the statistics bureau.
Source: Brecorder
